Houses of the Oireachtas

All parliamentary debates are now being published on our new website. The publication of debates on this website will cease in December 2018.

Go to oireachtas.ie

Written Answers. - Fees Tax Relief.

Thursday, 28 March 1996

Dáil Éireann Debate
Vol. 463 No. 5

First Page Previous Page Page of 110 Next Page Last Page

 50. Miss Quill Information on Máirín Quill Zoom on Máirín Quill  asked the Minister for Education Information on Niamh Bhreathnach Zoom on Niamh Bhreathnach  if she will make a statement regarding her decision to provide tax relief on fees for approved courses in approved third-level private colleges in view of her decision to abolish such relief namely covenants for those attending public third-level institutions. [6681/96]

 86. Ms Keogh Information on Helen Catherine Anne Keogh Zoom on Helen Catherine Anne Keogh  asked the Minister for Education Information on Niamh Bhreathnach Zoom on Niamh Bhreathnach  if she will make a statement on her decision to provide tax relief on fees for approved courses in approved third-level private colleges in view of her decision to abolish such relief namely covenants, for those attending public third-level institutions. [6845/96]

Minister for Education (Ms Bhreathnach): Information on Niamh Bhreathnach Zoom on Niamh Bhreathnach I propose to take Questions Nos. 50 and 86 together.

The Government decided to make changes in the tax treatment of covenants not only as part of the restructuring of State support for third level education but also to curb the growing cost of covenant tax relief to the Exchequer. The withdrawal of covenant tax relief, except for some restricted categories, means that the abolition of full-time undergraduate fees has been achieved for a relatively small additional cost to the State.

The benefit conferred under the covenant tax relief was available to students in both publicly funded and private third level colleges. It was highly regressive as the extent of the tax relief was greater for those on higher incomes and the rate at which relief was given was not restricted to the standard rate of tax.

The loss of covenant tax relief is offset by the free fees initiative for those students who are eligible to avail of it. Students in private colleges are not eligible for free fees and it was deemed appropriate to introduce some measure [1410] of assistance for them by way of tax relief on tuition fees. Unlike the covenant tax relief, this relief will be subject to a maximum limit of tuition fee and will be given only at the standard rate of tax.


Last Updated: 14/05/2015 08:36:21 First Page Previous Page Page of 110 Next Page Last Page